we only inteded to stay on Koh Lipe for a day or two and loved it so much that it nearly ended up being a week. It´s a tiny island, so it really doesn´t matter that this hostel is not right at the beach. Most places are a 5-15min walk away. The rooms are very simple, just a little hut with 2 matraces and a fan but if your on a budget that´s really all you need. They have a very spacious common area and the staff was very.
If your not going during high season I would sugest just showing up and not booking online. You will get a much better deal that way.
The only downside to this place are the neighbors. It´s a pretty big bar that wasn´t actully open when we stayed. Instead of people quite aggresive and territorial stray dogs were hanging out there at night. Could have lived with being barked at, that happens in Thailand but 5 or 6 dogs slowing advancing with their teeth bared at 2am in morning on a deserted dirtroad, I hope I never have to see that again.